arrow to navigation
24.01.2022 | 5 min

What is industrial IoT and its role in Industry 4.0?

Every entrepreneur focused on business development must be aware of what changes the future will bring and how it may affect their company. One of the biggest upcoming trends is the industrial IoT, which is revolutionizing companies from various industries.

What is industrial IoT and its role in Industry 4.0? - 2024 22
Table of Contents
  • What is the Industrial IoT?
  • Industrial IoT and what is its role in Industry 4.0
  • How can your company benefit from Industrial IoT solutions?
  • Take the next step

One of the key ecosystems of the Fourth Industrial Revolution is the Industrial Internet of Things. Investing in high-tech solutions is essential to keep up with the competition and requirements of today's customers. Let's take a closer look at what the IIoT has to offer.

What is the Industrial IoT?

The Industrial Internet of Things (IIoT) is a sub-category of IoT intended for industrial applications. This ecosystem of applications, devices, and sensors is designed to collect and analyze industrial processes. One of the main goals of IIoT is to optimize systems by introducing data management connected to machines, and consequently increase productivity.

The main benefits of IIoT include:

  • improvement of safety,
  • cost reduction,
  • increased visibility,
  • increased service and problem-solving capabilities,
  • increased operational efficiency,
  • excellent product quality,
  • faster response time thanks to real-time data analysis.

IIoT infrastucture.jpg

How is industrial IoT different from other types of IoT?

The Internet of Things (IoT) is a broader concept than industrial IoT, which is used by industries primarily to improve the security and efficiency of their operations. On the other hand, IoT is dedicated to consumer and commercial applications, typically for connected device applications commonly found in offices and homes.

Failure of the Industrial Internet of Things system can have dangerous and even life-threatening consequences. Failure of IoT devices usually results in delays and inconvenience.

Industrial IoT and what is its role in Industry 4.0

Industry 4.0 is a term that describes the fourth industrial revolution, which indicates rapid technological progress and the accelerated development of industries. The main trends in Industry 4.0 are automation, cloud computing, artificial intelligence applications, data analytics and the Internet of Things.

Nevertheless, industrial IoT as a subcategory of the Internet of Things has an important role to play in the successful digital transformation of industries.

Common values of IIoT and Industry 4.0

Both Industrial IoT and Industry 4.0 focus on introducing automation and improving the efficiency of industrial operations. This would not be possible without the use of advanced technological solutions, which are based on the promise of integrated internet connectivity and fast and wireless systems.

While process automation is one of the prime goals for both IIoT and Industry 4.0, the human factor is imperative for this to happen. For now, we can only efficiently automate existing operations, making them more efficient and faster.

In order to develop new processes, people with their creativity, knowledge, and experience are needed. Companies will achieve profits far greater than their initial investment by making full use of the acquired data and automation.

Industry 4.0.jpg

Differences between Industrial IoT and Industry 4.0

While the Industrial Internet of Things and the Fourth Industrial Revolution complement each other in many ways, there are some important differences that should be mentioned.


The IIoT typically refers to equipment used for specific industrial purposes. Industry 4.0 is a wider concept, putting the Industrial IoT in the broader context of analysis to maintain sustainability and improve operational efficiency.

The action

Industry 4.0 is not about a specific technology solution, it is rather a technology-driven concept, presenting a long-term vision of the digital transformation of industries driven by several major solutions such as IIoT. Industrial IoT is most often defined as investment in technology and equipment in solutions such as connected devices, data transmitters, wireless solutions, etc.

Industrial IoT relies heavily on the development of other technologically advanced solutions, such as, for example, 5G wireless capacity, which is used to transfer data collected by IoT products.

Importantly, both IIoT and Industry 4.0 are intended to complement each other in many ways and share the common goal of streamlining industrial operations and increasing efficiency through automation, high-tech equipment, and more.

How does the Industrial Internet of Things enable the fourth industrial revolution?

IIoT is one of the breakthroughs that set Industry 4.0 apart from previous industrial revolutions. Connected devices and sensors linked to a central server take automation to a new level. This opens up exciting opportunities for industries such as connected supply chains, automated energy maintenance, smart factories, and more.

There is always room for process improvement because artificial intelligence in IIoT uses the collected data, which, once processed and analyzed, provides valuable information about the effectiveness of activities. This is one way the Industrial Internet of Things enables the fourth industrial revolution.

Artificial intelligence enables the monitoring and processing of data collected by the IIoT, which is the basis of what is indicated by the philosophy of Industry 4.0. Both technologies complement each other as they lead industries through digital transformation.

Companies from many industries have already invested in Industrial IoT and started adopting commitments to Industry 4.0. The sooner companies start these processes, the better business results they can expect, especially when compared to competitors in the market that do not invest in technological advancement.

A great way to make sure that IIoT concepts are right for your business is to look at case studies that show how other companies have taken advantage of high-tech solutions. At Order Group, we had the privilege of working on an IoT system for monitoring and managing an airport lighting system called Monster.

How can your company benefit from Industrial IoT solutions?

Digital transformation is a necessary step for any company that focuses on growth and wants to gain a competitive advantage. The implementation of Industrial IoT solutions can be a great step in introducing the Fourth Industrial Revolution concept, which offers numerous business benefits.

  • Cost reduction. IIoT solutions enable the automation and monitoring of processes on a new level. The data provided by the connected products, once processed, enable in-depth analysis and as a result shows where systems can be improved to maximize efficiency while minimizing costs.
  • Excellent quality. The Industrial IoT makes operations more scalable and secure. Data analysis and high-level automation guarantee great product quality.
  • Reduced time. One of the key benefits of automation offered by IIoT is the ability to speed up operations and prevent errors through data analysis.
  • Increased revenue. The high level of automation in Industrial IoT lowers operating costs, which translates into an increase in the company's profits.
  • Predictive maintenance. Industrial IoT uses real-time data that enables continuous process monitoring, fault detection and artificial intelligence-based prediction of possible errors.

Take the next step

Now that you have all the information you need to know about IIoT and Industry 4.0, it's time to start the process of implementing it in your business. This is a great challenge for any entrepreneur, but don't worry, you don't have to do it yourself.

At Order Group, we are proud to be among the Top IoT Development Companies helping other companies transform their organizations with technologically advanced solutions. We are experienced in IoT software development and we are open to new challenges.

We will help you to transform your business with IIoT solutions
Contact us!
What is industrial IoT and its role in Industry 4.0? - 2024 22 Read more